Dutch banking group ABN Amro has agreed to acquire Societe Generale Private Banking, the Belgian private banking subsidiary of French banking group Societe Generale. Financial terms of the deal were not disclosed.

Under the agreement, ABN Amro will acquire the activities conducted by the Belgian subsidiary, along with its client portfolios and staff.

“By combining ABN Amro’s existing private banking activities in Belgium with those of Societe Generale, ABN Amro strengthens its market position in Belgium and its position in the Eurozone as a leading private bank,” the Dutch lender said in a statement.

The deal forms part of Societe Generale’s strategy to offload businesses lacking critical size, and the potential for generating synergies with other businesses within the group. The private banking business now plans to focus on France, the UK, Luxembourg, Switzerland and Monaco, and partner with international banking networks.

Through the takeover, ABN Amro will increase its assets in Belgium to around €12bn.

ABN Amro expects the transaction to have a minor impact on its CET1 capital ratio. On the other hand, Societe Generale expects the deal to have a “limited positive impact” on its core equity tier one ratio.

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The deal is slated to be wrapped up in the first quarter of next year, subject to regulatory nod.

ABN Amro Private Banking CEO Pieter van Mierlo said: “This acquisition fits perfectly with our strategy to solidify our position in Private Banking in North-West Europe. It will enable us to serve our clients better and to grow our activities further.”

However, Societe Generale will retain its corporate and investment banking, specialised financing and leasing businesses in Belgium.